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LAWS OF MARYLAND

Ch. 33

PRINCIPAL OBLIGATION OF A MORTGAGE MAY NOT EXCEED 100
PERCENT OF THE COST OF PROJECT.

REVISOR'S NOTE: This subsection presently appears as
the introductory clause of Art. 41, § 266T(b) and
the first sentence of Art. 41, § 266T(b)(2).

The present reference to certain "charges and ...
fees approved by the authority" is deleted as
unnecessary given the general reference to the
"principal obligation", which is the essential
element in applying this formula, whether or not
these changes and fees are part of that
obligation.

The only other changes are in style.

The term "cost of project" is defined in §
13-101(c) of this subtitle.

(B) MAXIMUM INSURABLE PORTION.

THE AUTHORITY MAY INSURE THE PRINCIPAL OBLIGATION OF A
MORTGAGE ONLY TO THE EXTENT OF:

(1)       $5,000,000 AS TO ANY ONE PROJECT;

(2)       90 PERCENT OF THE COST OF PROJECT AS TO REAL
PROPERTY; AND

(3)       70 PERCENT OF THE COST OF PROJECT AS TO
MACHINERY AND EQUIPMENT.

REVISOR'S NOTE: This subsection is new language derived
without substantive change from the second
sentence of Art. 41, § 266T(b)(2).

The term "cost of project" is defined in §
13-101(c) of this subtitle.

13-135. MORTGAGE INSURANCE PREMIUMS — IN GENERAL.

(A)       IN GENERAL.

THE AUTHORITY MAY SET THE PREMIUMS TO BE PAID TO IT FOR
INSURING MORTGAGE PAYMENTS UNDER THIS SUBTITLE.

(B)       COMPUTATION OF PREMIUM.

IN ITS DISCRETION, THE AUTHORITY MAY COMPUTE THE
PREMIUMS:

(1)   A3 A PERCENTAGE OF THE ENTIRE PRINCIPAL
OBLIGATION OUTSTANDING AT THE BEGINNING OF EACH MORTGAGE
YEAR; OR

(2)   AS A PERCENTAGE OF ONLY THE INSURED PORTION